In discussing the situation of countries leaving the gold standard, or unilaterally devaluing during the 1930s, Barry
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In discussing the situation of countries leaving the gold standard, or “unilaterally devaluing” during the 1930s, Barry Eichengreen of the University of California, Berkeley, and Jeffrey Sachs of Columbia University observe: “In all cases of unilateral devaluation, currency depreciation increases output and employment in the devaluing country.” Explain how leaving the gold standard in the 1930s would lead to an increase in a country’s output and employment.
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Money, Banking, and the Financial System
ISBN: 978-0134524061
3rd edition
Authors: R. Glenn Hubbard, Anthony Patrick O'Brien
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